HRM Practices and Employee Behavior

This assignment delves into the connection between perceived Human Resource Management (HRM) practices, employee engagement, and their subsequent behaviors. It examines how various HRM practices influence employees' levels of engagement and, consequently, their actions within the workplace. The assignment utilizes a moderated mediation model to analyze this complex relationship.

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Functions of HRM workforce planning along with purpose.............................................1
P2 Strengths and weaknesses of various approaches to recruitment and selection................2
TASK 2............................................................................................................................................4
P3 Benefits of different HRM practices for employer and employee ...................................4
P4 Effectiveness of HRM practices to raise organisational profit and productivity..............5
TASK 3............................................................................................................................................6
P5 Importance of employee relations in respect to influencing HRM decision-making.......6
P6 Key elements of employment legislation and its impact upon HRM decision-making....8
TASK 4..........................................................................................................................................10
P7 Application of HRM practices........................................................................................10
CONCLUSION..............................................................................................................................12
REFRENCES.................................................................................................................................13

INTRODUCTION
In every kind of organisation, human resource management plays important role in taking
care that workforce is competent and skilled. Recruitment, selection, induction, compensation,
training and development are various tasks performed by them. They should distribute job
among manpower in according to their skills and knowledge, so that individuals are able to
perform activities in proper manner (Huselid and Becker, 2011). Present report is based on
Lloyds banking group, which is popular financial service company of United Kingdom.
Employer of company constructed relationship with staff members; to keep them motivated and
dedicated towards duties assigned. By framing policies and strategies through which workers get
positive working environment. This benefit firm to make employees perform activities and
accomplish duties within specified time frame.
TASK 1
P1 Functions of HRM workforce planning along with purpose
Arrangement of most qualified persons having desired skills and capabilities at right job
in a specific time is referred as workforce planning of a company. This setting of workforce has
done by HRM of an organisation. Managers in this take responsibilities of managing entire
functions as well as determines policies for providing benefits to the employees in context with
company. They always engage with employee engagement and facilitate innovative & creative
ideas to the enterprises (Budhwar and Debrah, 2013). Each part of activity of HR has own
importance from which main objectives is to fulfil company's requirement by recruiting and
selecting the desired candidates.
Definition of HRM: According to Becker, Human resource management is a practice of
staffing, organising, planning, hiring and deploying in an organisation. The main role of this
department is to make effective and efficient use of manpower in a company so that they can
contribute their efforts in the achievement of business goals and objectives. Human resource
management of all type of businesses whether retailing, manufacturing or banking sector like
Lloyd Banking Group performance same type of functions with different purpose like: -
Main purpose of HRM of Lloyd Bank is to provide customer satisfaction and get their
retention. To make effective customer services, managers provide necessary training
programmes for its workers so that they become able to achieve the desired goals. For this
1

achievement, this bank provides financial and non-financial compensation to its employees.
Wages, salaries, bonuses and insurance like pension, retirement plans are part of financial
compensations. While non-financial ones include job satisfaction process. Concerning with this
procedure, managers include appraisals system also. Along with this, purpose of HRM is to
create better organisational culture so that entire tasks of business operations can be managed in
a systematic manner. In Lloyd Bank, manager concerns more on maintaining positivity in
atmosphere culture also.
Functions of Human Resource Management
HRM performs various activities in an organisation along with many activities in order to
achieve business objectives in a limited period of time. Their main function is to manage people
at workplace and provide them several benefits in order to gain their productivity as well. In
context with Lloyd Bank performs following task to increase sales performance as well as
provide effective service to customers:- Recruitment and selections procedures: The main function of HRM in an enterprise like
Lloyd Bank is recruitment and selection procedure. In this process, they take various
activities and used several methods of recruitment to hire best talented people at
workplace.
 Employee relations management: Employees are the most valuable part of an
organisation so, managers are used to provide them several benefits. Along with this, they
always try to engage workers in group in order to develop their relations with each other.
Working in team help them to share views and opinions with each other. If workers have
good relations then they will accomplish a task in better manner as well as on time.
 Training and learning sessions: This process help workers to enhance their skills and
knowledge in a particular field. Through this they can understand roles and
responsibilities in a firm and work in a desired manner. HR managers of Lloyd Bank
provide them apprentice training to train employees.
P2 Strengths and weaknesses of various approaches to recruitment and selection
Every organisation requires best talent of workforce for which they take many processes
according to their requirement. This procedure of choosing a right candidate having desired
abilities and qualifications is said to recruitment process (Chelladurai and Kerwin, 2017). It
2

includes many activities and methods before selecting the most desired one, which are describing
as below:
Internal Source of recruitment External Source of recruitment
In this process, a company recruits a people
from its workforce by promoting or
transferring them from one post to desired one.
It needs to monitor and measure performance
of each employees so that they can recruit for
further position in a positive manner.
It includes various process, in which
management need to advertise vacancies of
company on websites, newspapers and other
social media. It provides a list of qualified
candidates applicants to them. Therefore, it
provides many options for a firm to choose the
best candidates among them.
Advantages Advantages
It is short-term procedure, hence takes less
time in recruiting the employees. This method
helps management to motivates workers and
provide job satisfaction in them as well as gain
their retention too. Through internal source, an
organisation becomes able to increase return
on investment also (Unger and et. al., 2011).
It brings candidates having fresh and
innovative idea in an enterprise who have
possessed all desirable qualification and skills
required to fulfil vacant positions. If applicants
have gained an experience already in the same
field, then they will not necessarily want
training programs. Thus, it is cost effective
process also.
Disadvantages Disadvantages
It generates feeling of competition in
employees which may affect their performance
in a company. This process also arise conflicts
between them. Also, it doesn't bring any
innovation at workforce.
External source of recruitment is a time
consuming method. It needs lots of attention
for recruiting the candidates in a company. It
de-motivates employees who are expecting
promotions for specific positions. Confidential
information of a company also may get void by
online procedures.
Recruitment process of Lloyd Bank is done by both internal and external methods.
Through external activity, it employs fresh graduates mainly. For this recruitment, candidates
3

have to go on its website then download available form (López-Nicolás and Meroño-Cerdán,
2011). After fulfilling the requirements of that form, post it again on same site. After then
management will select eligible applicants then take an aptitude test of them to check their skills
and knowledges in same field. After then, managers select the most desired one by taking their
interview. Some approaches used by managers of Lloyd Bank are given as below:- Job analysis: It is a first phase in which managers of a firm used to grab information
about vacancies. According to requirement, they make decisions in context with
conducting recruitment and selections process. Along with this, they carry out several
activities for hiring eligible candidates for specific job position. Job Description: This phase includes details about vacancy as well as mention necessary
information including salary, experience, roles and responsibilities etc.
 Person specifications: It includes qualification, knowledges, abilities and skills required
for a specific job which is related with job descriptions.
Strengths of recruitment and selections Internal method is used for recruiting employees from within workforce through
promotion. Thus it helps in reducing cost and time as well as such process doesn’t require
to give training and induction program to employees who get transfer on new job. In context with external recruitment it assist in developing ideas and creativity by
introducing candidate from outside the organisation. .
Weaknesses of recruitment and selections
 The major weakness of internal process is that it fails to provide freshness in workforce.
 While external method takes much time and money.
TASK 2
P3 Benefits of different HRM practices for employer and employee
HRM practices concerns on various factors like how to improve the proficiency of workers
and organisation. It helps an enterprise to attain its competitive advancement. Managers provide
various training programs according to needs of employees in their part of work like off-the-job
and on-the-job. Employers and employees get many benefits from these practices in following
ways:-
4

Training and development: Training programs develop knowledge of employees in a
particular field which helps them in performing their work in a desired manner. It sharpens their
abilities in other field also like trends of commercial market, financial and non-financial
activities etc. This will develop careers of them also. These programs help employers to get
productivity of workers as well as gain their retention for longer period of time.
Decision making process: .Managers create effective workforce by including workers in
decision-making process which increases morale of them also. Information regarding working
operations, strategies and change management keep employees to stay updated with firms’
activities. This process helps in generating feelings of equality in employees as well as getting
their retention too. Through employee retention, a firm will get enlarge workforce which helps in
increasing its revenues as well as profit share at marketplace
Performance Appraisal System: Lloyd Bank provide performance appraisals, job
security, health insurances, retirement plans etc. so that workers can feel safe while working in
such type of environment. It encourages them to perform their duties and responsibilities in an
efficient way.
Employee Relation: The main practice of HRM is to manage employee relations in a
firm which helps in accomplishing a difficult task on time. In context with workers, developing
relations with other colleagues help them in sharing their views and opinions and do work in
proper manner.
Organisational Culture: HR managers help in building effective organisational culture
which constitutes fair, transparent and honest services of employees. Culture of a company
affects behaviour of employers and employees too. Working in good atmosphere with nice
colleagues help workers to stay happy and give contribution in achievement of business success.
P4 Effectiveness of HRM practices to raise organisational profit and productivity
HRM practices include many training and beneficial programmes in order to improve
abilities, skills and knowledge of employees (Effectiveness of HRM practices, 2018). Through
various practices, management helps employees to develop their career in same field also. It
makes them able to enhance company's productivity as well as increase profitability in the
following manner:-
Improvement in Abilities and Skills of Employee: Managers of Lloyd Bank performs
various functions to achieve its goals and objectives. Since, this organisation engages its business
5

in providing effective customers services so, management helps employees to make them able in
this field. Managers provide necessary training for workers that increase their skills in
providing such type of services (Messersmith and et. al., 2011). Through this, a firm will be able
to acquire customer retention also.
Appreciation to raise performance: For better performance and productivity of
employees, this bank includes rewarding system also. It includes monetary and non-monetary
awarding plans such as promotions, increasing wages and salaries, performance appraisals,
compensations etc. Such type of HRM practices increase work capacity and quality of products
and services of company.
Return of investment: By getting effective training programmes like structured one,
makes worker to analyse situation of a company for better contribution. It proves beneficial for
workers of banking sector to keep their knowledge updated in financial and non-financial terms.
It helps banks to increase their productivity as well as provide effective services to its customers
on time.
Cooperation and sharing: Managers are always trying to force workers to work in a
group. Team-work support employees to share their views, opinions and ideas with others which
helps them to work in a better way. Cooperation and coordination among workers help a firm to
achieve its objectives in a certain period of time (Schermerhorn and et. al., 2014). Therefore,
HRM involves various practices to set a vision for individuals and group members so that they
can work efficiently.
Employee empowerment: This process enables employees to take part in decision-
making activities of a firm. Through employee empowerment, persons become able to think,
behave and take actions in part of work. Managers implement such type of practices so that time
to respond becomes less and workers will feel much more control in their life after taking an
authority to make decisions in business operations. It includes improving communication skills
and encouraging for sharing the resources etc. by which employees can experience a feeling of
self-esteem and confidence in them.
6

TASK 3
P5 Importance of employee relations in respect to influencing HRM decision-making
Employee relations referred as process of HRM to engage people in team work. Through
working in group people can develop good relations with each other as well as shares their skills
and knowledge. Through team work a company get higher productivity of workers which helps
in providing better services to customers as well. Some major benefits of employee relation in a
firm like Lloyd Bank are:
Sharing work: Through working in group help employees to make effective relationship
with other. In addition to this, they can complete various tasks easily by sharing work with others
in an appropriate manner.
Resolve conflicts: Having good relations among workers support managers to reduce
chances of conflicts. Along with this, employers can resolve difficult situations easily
appropriately. Woking in team is beneficial for both employers and employees in achieving the
goals on time.
Employees’ loyalty: Through HRM practices like training and development, performance
and reward system etc. help in providing satisfaction to employees as gain their loyalty. Honest
and loyal workers assist companies to gain sustainability at marketplace for longer purpose.
Besides this, benefits of employee relations on organisation and its functionality is as follows:
 This help firm to retain competent people for longer period, by making them connected
and providing adequate compensation as per their efforts.
 HR execute activities to enhance skills of workforce and make them perform activities in
proper manner.
 This help employer to motivate employees and keep them dedicated towards their job.
 This help HR to anticipate issues and problems among workforce. Thereby, taking
appropriate judgements.
 Through this, superior is able to make employees work in team and complete tasks in
efficient way. By taking care that there are no conflicts between them.
Thus, it can be comprehended that employee relations in essential; through which human
resource management is able to utilise manpower in proper manner. In Lloyd bank, employer
provide adequate information about goals and objectives of organisation (Sheehan, 2014). By
making employees acknowledge targets that they are required to attain; help in making them
7

function effectively. So, staff members are involved in decision making and other activities
which help in keeping them connected with firm. They will perform activities in proper manner
and complete tasks within specified time. This also benefit administration to get information
about opinion of workers in regarding market conditions and so on. Thereby, executive select
alternatives which are advantage for company. So, superior are able to frame appropriate
strategies and make employees function in suitable manner. This help firm to deliver efficient
service to people and retain them with organisation for longer period. As a result, company
image and reputation in marketplace enhance and this help them to compete with competitors.
Some strategies used for making effective relations with employees: Competitive pay and benefits: This approach entails managers to set salaries and wages
of employees. In this manner, they are required to review jobs and description of same
position of other companies so as to pay more than the same to workers. It will help in
getting retention as well as making good relations with them. Support work life balance: By giving flexible working hours to employees and fixing
their schedule help in reducing stress level of them. Therefore, in this manner managers
of Lloyd Bank used to provide five days working schedule to workers. Safe working conditions: Workers are always want to work in safe environment.
Therefore, by providing them healthy and safe working atmosphere, management can
extract good work from them.
 Effective communication: By organising regular meeting with employees, management
can make effective communication with them. Managers can determine needs of
employees on individual basis and complete the same. Meeting with employees, will aid
management in developing good relations with them as well.
P6 Key elements of employment legislation and its impact upon HRM decision-making
In organisation, employer frame policies, rules and regulations; so that they are able to
make system function in according to government of country in which business is being
conducted. As in every nation, regulatory bodies formulate laws to safeguard rights staff
members and take care that they get healthy working environment in firm. In Lloyds bank,
human resource management make alterations in policies and taking appropriate decisions in
according to employment legislations (Rubery and Urwin, 2011). These are various laws which
are made by government to regulate functioning of business are as follows:
8

Healthy and safety act, 1974: Regulatory body frame this act to take care that workforce
get proper working environment, which is free from hazard. It is employer duty to make
employees aware about activities and conditions of firm. Thereby, provide adequate facilities to
them to make workers perform tasks in proper way. In Lloyd bank, staff members get positive
working environment inside organisation. So, they are able to retain competent people and
deliver effective service to clients.
National minimum wages act, 1999: This law was frame by government to take care
employees get adequate compensation in respect to their duties and efforts. So, every firm should
provide minimum wage to each candidate for their living. In Lloyd bank, it is employer
responsibility to provide wages in according to skills and abilities of individual. Thus, by
implementing this act and providing appropriate compensation to all manpower (Sparrow,
Brewster and Chung, 2016). This benefit firm to make them function activities in proper manner
and eliminating chances of conflicts between labour and management.
Equal pay act, 1970: Government frame this law, so that female and male get
compensation in according to their capabilities. Human resource management should provide fair
treatment to all individuals and don't distinguish them on basis of caste, gender and background.
In Lloyds bank, employees get wages in according to job assigned to them in according to their
skills and knowledge. This help firm to utilise manpower and make them function in suitable
manner.
Equality law, 2010: This legislation specifies that workforce get adequate chances
through which they can move up in their career. Employer should distribute duties and provide
activities to individuals in according to their skills and abilities. They need to give equal
opportunities to both, female and male. Besides this, employees should be given compensation in
as per their efforts; so that they complete tasks and accomplish targets within specified time
frame.
RIDDOR 2013: Regulatory bodies instruct administration that they should communicate
information about activities which have been distorting for business. Lloyd Bank, employer
deliver data about all damage and injuries that have taken in firm.
Data Security Act: According to this act, it is amendable for a company to protect
confidential and personal data of employees from third parties. Along with this, organisations
9

should use data of workers in proper way according to data protection principles which includes
data used in accurate, fairly and lawful manner.
Thus, these are various employment legislations that government frame in according to
regulate functioning of organisation. Through these act, employer duty is to make policies and
take appropriate decisions which are beneficial for company (Sheehan, 2014). By providing
positive working environment and adequate compensation to all staff members in according to
their abilities. This help firm to offer appropriate items and service to people and retain them for
longer period.
TASK 4
P7 Application of HRM practices
Employer carry out activities through which they can recruit competent people and fulfil
vacant positions. Human resource management practices are performed by them to take care that
they adequate resource are available with firm (Welch and et. al., 2011). As in Lloyds bank,
human resource management uses internal and external approach of recruitment for post of
Manager for Marketing and Sales department. By giving advertisement in print media and
through company websites, to make people aware about position and its qualifications required
to be present in candidate.
Job Description
JOB DESCRIPTION
Organisation Name: Lloyd Bank
Job Details:
Post: Manager
Department: Marketing and Sales
Roles and Responsibilities Increase firm's reachability to enhance customer base. Enhance market reputation and goodwill of bank in client's mind. Providing support to subordinates, so that they attain targets within specified time. Improve system to deliver adequate service to satisfy customers.
Required Qualification
MBA (Master degree in business administration)
10

Experience required
8 to 10 years
Salary
10 to 12.5 lac per annum.
After making a job description as shown above, next step is to use effective media in
order to provide information regarding job and vacancy of particular position. Here are CV of
candidates which is as follows;
CV:
Curriculum Vitae
Name:
E-mail:
Contact:
Objective: To work in organisation through which administration and supervision skills are
utilised. This help in enhance in career and grow abilities by functioning in firm.
Qualification:
Class University/Board Grade Passing year
12th class ABC School 90.00% 2012
Graduation in
commerce
DEF College 85.00% 2015
MBA (Post
graduation)
XYZ University A 2017
Experience:
2 Years knowledge of sales and marketing in broadcasting sector.
Personal Skills:
 Leadership abilities.
 Effective communication qualities.
 Computer knowledge.
11

Declaration: Here by I have declared that information mentioned above is true as per my
knowledge and experience.
Henceforth, Job Specification is tool which is used by human resource management to
communicate people about position and qualification required by candidate (Schermerhorn and
et. al., 2014). As in Lloyd bank, employer has given advertisement of manager for post of
marketing and sales. By using various promotional methods to deliver adequate information in
marketplace. This help firm to make system function in according to market conditions and
accomplish goals and objectives timely. By carrying out recruitment process and staffing
individual in according to their capabilities. Thus, organisation is able to improve their reputation
and image in market.
CONCLUSION
From the above report, it can be comprehended that human resource management play
essential part in taking care that business activities are conducted in effective manner. They
require that organisation have adequate number and skilled workforce available. For this
recruitment, compensating, training, performance appraisal and staffing are various activities
which are performed by employer. Besides this, they even frame policies and make system
function in according to government legislations. By establishing employee relationship, so
superior are able to anticipate conflicts and issues that is faced by workers and provide them
adequate solution. This will benefit firm to make workforce perform activities in effective
manner and accomplish targets within deadlines. Hence, goals and objectives of firm are
accomplished timely.
12

REFRENCES
Books and Journals
Alfes and et. al., 2013. The link between perceived human resource management practices,
engagement and employee behaviour: a moderated mediation model. The international
journal of human resource management. 24(2). pp.330-351.
Budhwar, P. S. and Debrah, Y. A. eds., 2013. Human resource management in developing
countries. Routledge.
Chelladurai, P. and Kerwin, S., 2017. Human resource management in sport and recreation.
Human Kinetics.
Huselid, M. A. and Becker, B. E., 2011. Bridging micro and macro domains: Workforce
differentiation and strategic human resource management.
López-Nicolás, C. and Meroño-Cerdán, Á. L., 2011. Strategic knowledge management,
innovation and performance. International journal of information management. 31(6).
pp.502-509.
Marchington and et. al., 2016. Human resource management at work. Kogan Page Publishers.
Messersmith, J. G. and et. al., 2011. Unlocking the black box: exploring the link between high-
performance work systems and performance. Journal of Applied Psychology. 96(6).
pp.1105.
Renwick, D. W., Redman, T. and Maguire, S., 2013. Green human resource management: A
review and research agenda. International Journal of Management Reviews. 15(1).
pp.1-14.
Rubery, J. and Urwin, P., 2011. Bringing the employer back in: why social care needs a standard
employment relationship. Human Resource Management Journal. 21(2). pp.122-137.
Schermerhorn and et. al., 2014. Management: Foundations and Applications (2nd Asia-Pacific
Edition). John Wiley & Sons.
Sheehan, M., 2014. Human resource management and performance: Evidence from small and
medium-sized firms. International Small Business Journal. 32(5). pp.545-570.
Sparrow, P., Brewster, C. and Chung, C., 2016. Globalizing human resource management.
Routledge.
Storey, J., 2014. New Perspectives on Human Resource Management (Routledge Revivals).
Routledge.
Unger, J. M. and et. al., 2011. Human capital and entrepreneurial success: A meta-analytical
review. Journal of business venturing. 26(3). pp.341-358.
Welch, C. and et. al., 2011. Theorising from case studies: Towards a pluralist future for
international business research. Journal of International Business Studies. 42(5).
Online
Effectiveness of HRM practices, 2018. Available
Through:<https://www.ukessays.com/essays/literature/human-resource-management-
and-organizational-performance.php>
13